Archive - February 2013
Noncompensatory Option Regs are Finalized: Where do Mezz Funds go from Here?
The noncompensatory option regulations have been subject to much debate and discussion, including by me on this blog. After many, many years in circulation, the famous or infamous proposed regulations were just finalized. Considering that the final regs came out just a few hours ago, I have not had the time to fully review and compare them to their proposed version, but nonetheless, I wanted to alert readers about this development. Finalizing the regulations is important because they will become immediately applicable for all deals that are closed after the date the regulations are...
February 04, 2013 read more
NEWT Act Reintroduced
For those who keep up with the net investment income tax (NIIT) and the S-corporation planning touted by many practitioners as a solution for minimizing both NIIT and employment tax, here is a fresh news to keep in mind. The Narrowing Exceptions for Withholding Taxes Act of 2013, or so called NEWT Act (purportedly named after former House Speaker Newt Gingrich) was reintroduced in the House this January 22 by Charles Rangel. This Bill is not new. It was also introduced in the 112th Congress and even prior to that with the American Jobs and Closing Tax Loopholes Act of 2010 (Sec. 413 of...
February 01, 2013 read more